Good morning, Mr. Chair.
Hello, everyone.
My name is Doug Ettinger. I am the president and CEO of Canada Post. My colleague Alexandre Brisson is with me. He is our chief operating officer.
Before getting started, I want to share that we very much appreciate the important work all committee members are doing here to ensure safety for the industry and all Canadians.
As you know, we've shared information with you in advance to help with this study. We're here today to simply help in any way we can.
To be clear right off the top, Canada Post does not engage any contractors under the Driver Inc. model.
Canada Post does not engage any contractors under the Driver Inc. model.
In fact, as you'll hear today, there is no place for the Driver Inc. model at Canada Post, and we fully support any regulatory changes that eliminate the Driver Inc. model right across Canada.
As one of the country's largest purchasers of goods and services, Canada Post has an important responsibility for rigorous procurement controls on our RFPs. We conduct fair, open and transparent procurement, ensuring our supplier activities are conducted with integrity and are compliant with all applicable laws and regulations. All suppliers doing business with Canada Post must comply with our supplier code of conduct as well as with the terms and conditions of their agreements. These agreements clearly state a commitment to legal compliance, safety, integrity and ethical business practices. For example, contractors must ensure that all facilities, equipment and operational practices meet our safety and security standards. They must safeguard mail and property, and maintain insurance, of course. Conditions like these are mandatory for doing business with us.
It's also essential that we actively ensure that our conditions are being met. Our supplier agreements give us the right to audit contractors at any time, with full access to their records, their facilities and their vehicles, and we definitely do that. In addition, to further our efforts, we utilize third party experts who specialize in ongoing validation of suppliers' contract requirements. These reviews look at key requirements, such as WSIB certification, carrier insurance, credit and other information. This approach has grown out of meaningful consultation with leading Canadian corporations in the transportation sector and with Transport Canada, over many years. When there is a violation of a supplier agreement, we are entitled to take appropriate action, including terminating it without further obligation.
As you know, in the transportation sector it is not uncommon for suppliers to engage subcontractors to meet demand and to fulfill service requirements. For Canada Post, the contracting supplier remains fully accountable for meeting all contract requirements and for ensuring that any subcontractors comply with the terms of the agreement and all applicable laws. This includes, but is not limited to, meeting all legal, safety and security requirements and ensuring that their workers receive appropriate training, supervision and screening.
A last point—and it is a very critical one—is that health and safety is our top priority at Canada Post. It's number one of all of the things we do, bar none. It's non-negotiable at Canada Post, and not just for our employees: Any carriers operating on our behalf are expected to prioritize health and safety. In fact, we have a zero-tolerance supplier policy when it comes to serious driver safety violations—one strike and you're out.
When it comes to safety, one strike and you're out.
We expect our suppliers to be thorough in their oversight of subcontractors, with safety as the top priority. We are not aware of any Driver Inc. practices within our network, but we have been following these committee discussions and would invite, of course, any evidence of it. As I said earlier, our processes are robust, and we're always looking to improve them, so if there's an allegation of misconduct that you believe we are not aware of, we will investigate it immediately, as has been our practice.
In conclusion, I can assure you that Canada Post does not engage the Driver Inc. model, and we have a rigorous approach so as to ensure that continues to be the case. We will continue to prioritize driver safety and to ensure responsible and ethical practices throughout the company and with our contracted services.